The firm said the global financial crisis in 2008-09 had caused "serious long-term damage" to the country's balance sheet and the state of the banking sector was still "uncertain".

This, coupled with slower growth among the UK's main trading partners, was "not conducive to allowing GDP growth to return to its pre-crisis trend rate", it added.

But it also implied the top credit rating was not expected to change in the foreseeable future.

Meanwhile, a top economic consultant group has said the world is not in imminent danger of heading back into a double-dip recession.

Although the growth will be affected by slower growth in the West, the emerging economies are too resilient for global growth to go negative again in the short term.

The Centre for Economic and Business Research (CEBR) has revised down it forecast for global GDP growth for 2011 to 3.4% from 4.1% predicted three months ago.

The main reason was a downgrading of the prospects for the US economy, where growth is forecast to fall to 2.2% next year after hitting 2.5% this year.

CEBR chief executive Douglas McWilliams said: "I would be prepared to bet one of my better shirts on there being no global double dip.

" Report author Owen Hames added: 'The weaker outlook for the world economy means that despite food price inflation we do not see interest rate rises in the US, the eurozone or the UK for most of the next 12 months."

Greengates Builders Merchants Accrington, Lancashire says lets hope Mr McWilliams is right then he doesn't have to lose one off his better shirts!